3320-R1 - Purchasing Card Procedures

Adopted
3/12/13


The district has contracted with JP Morgan Chase to provide designated employees with a district managed credit card which is known as a Purchasing Card. These cards have restricted dollar limits and merchant groups, but will improve the ability to make district purchases.

The Purchasing Card is intended to simplify the purchase process in several ways.

· Replace the need for low dollar purchase orders.

· Allow for online purchases from vendors who do not accept purchase orders.

· Minimize personal reimbursement transactions.

· Decrease the turnaround time for receiving of orders.

ROLES AND RESPONSIBILITIES

Cardholder:

Each card will have a cardholder who is the administrator with budget authority for the card. The cardholder is responsible for approving all card purchases and for authorizing the payment of monthly charges.

Card Custodian:

Each card will also have a card custodian who will be responsible for the day-to-day control of the card. The card custodian is responsible for maintaining and preparing the proper documentation for the reconciliation of monthly statements by the cardholder.

Card User:

The card user is the individual that actually uses the procurement card.

PURCHASING GUIDELINES

The Purchasing Card may be used only for purchases that are currently allowable under the purchase order, imprest account or expense reimbursement processes. Purchases are for District use only. The Purchasing Card can be used at any qualified merchant who accepts credit cards. If the merchant is online, you are responsible for reviewing the vendor’s return policies and acceptability as a district vendor before making a purchase. If you are in doubt as to a merchant’s suitability, contact the Business Office prior to completing the purchase. Food purchases must be made in accordance with District policy.

Card Users must have prior administrative approval as appropriate with district policy. All purchases must be for the current school year only. You may not use it to prepay for items intended for the following fiscal year such as magazine subscriptions, and online access subscriptions. Any questions as to the appropriateness of a purchase should be directed to the Business Office.

Non-appropriate purchases include:

· Contracted Service Agreements

· Personal items or any other non-district expense

· Gifts

· Donations

· Cash Advances

· Computers/Tablets/Cell phones/pagers

· Items on the “Theft Sensitive Items” inventory list.

The business office may evaluate the use of a Purchasing Card for technology equipment and capitalized equipment if it is in the best interest of the district. If it is determined to be in the best interest of the district purchases for these items will be made through the business office.

Purchasing Cards needed for travel can be checked out at the district office. Building/department cards should not be used for travel.

All purchases must be delivered to the employee’s work location or the district office.

Purchases may not be delivered to personal addresses.

CREDIT LIMITS

The business office will determine and set the credit limits for each card based on the intended use. Each card will have a Maximum Per Transaction limit and a Maximum Per Card Per Month limit. The standard limits are listed below. The business office may assign a different limit if it is in the best interest of the District. Do not attempt to circumvent these limits by asking the vendor to split the order.

Type of Card

Per Transaction Limit

Monthly Card Limit

Department Cards

$500

$2,500

Individual Cards

$2,500

$10,000

Business Services Cards

Based on intended use

Based on intended use

LOST OR STOLEN CARDS

Like your personal credit card, if your Purchasing Card is lost or stolen, you must promptly notify the bank and contact the Business Office as soon as possible.

The card will be closed and a new card will be issued. If the old card is located at a later date, return it directly to the Business Office directly. The card will be properly destroyed. Do not attempt to use the old card after it has been cancelled.

Fraud Control

Account security is a major concern for the District. Our risk factor for credit fraud has increased due to increased phishing emails, bogus internet websites designed to fraud, coupled with increasing incidents of identity theft.

IF YOU IDENTIFY A FRAUDULENT CHARGE ON YOUR CARD:

· Contact the merchant to gather information about the charge, dates, contact info, shipping info, etc. Try to get the charge removed.

· Contact the Business Department

IF JP MORGAN CHASE IDENTIFIES A FRAUDULENT CHARGE ON YOUR CARD:

JP Morgan Chase monitors fraud control through account monitoring, verification of transactions with the cardholder, as well as canceling cards to avoid further loss.

If you are contacted by a JPMorgan Chase fraud team member, please respond using the following guidelines:

  • JP Morgan Chase representatives will identify themselves, state the purpose of the call and provide the card number in question. If you have concern over the identity or validity of the JP Morgan representative, ask for a call back number through their main switchboard.
  • District Cardholders may not give out their card numbers; however, they may confirm the card number provided by JP Morgan Chase.
  • District Cardholders will be asked if certain transactions are valid and approved by the Cardholder. Because the transactions are monitored and identified prior to posting, in some cases, the representative may not yet have the vendor name. He or she will have the dollar amount and the Merchant Category Code (MCC). This is a universal credit card code that identifies the type of business (e.g. MCC 5261 = hardware).
  • District cooperation in confirming or denying the questioned transaction/purchases is critical to the value of this notification.
  • Contact Business Services immediately following the interview.
  • In the event of fraudulent charges, JP Morgan Chase will send an affidavit to the Cardholder to sign and return to JP Morgan Chase. Forward a copy of the completed affidavit to Purchasing.
  • The card will be de-activated and a replacement card will be issued.

INDIVIDUAL CARDHOLDER SETUP

A Purchasing Card can be issued in the name of an individual and the District. This provides the cardholder and the district with fraud protection in case of misuse of the card. The cardholder must sign a Memorandum of Understanding (MOU) which details the responsibilities of the employee. The MOU is signed by the cardholder and their Manager and returned to Business Office. A new MOU must be completed at the beginning of each fiscal year. The individual cardholder is responsible for all charges to their card; therefore, it should be kept in a secure location and not be loaned to another person.

DEPARTMENT CARD SETUP

Purchasing Cards can also be issued in the name of a school or specific department. This provides flexibility in the use of the card but the card custodian/administrator in charge of the card needs to be diligent regarding fraud protection in case of misuse of the card. The card is provided to a card custodian who will be in charge of safeguarding the card and meeting and providing monthly reconciliation reports to the business office. That designated employee must sign a Memorandum of Understanding (MOU) which details the responsibilities of the employee. The MOU is signed by the card custodian and their card holder and returned to the Business Office. As with the individual cardholder set up, a new MOU must be completed at the beginning of each fiscal year.

TRAVEL CARD

Travel Cards will be issued to travelers to pay for:

· Airfare-Airfare must be purchased through the Business Office

· Lodging

· Ground transportation – shuttle, taxi, rental car, parking

· Gas for rental car only

· Allowable meals. If meals are provided as part of the conference, you may not use the Travel Card to purchase those meals. All District food policies and procedures must be followed. (see Employee Reimbursement 3500)

The traveler(s) must process a B-100 Travel authorization detailing who is traveling, where they are going, purpose of the travel, and the dates of travel. The Travel authorization must be approved by the supervisor and submitted to the Business Office. Once authorization has been processed and given to the traveler, the traveler can arrange to pick up his/her Travel Card one business day prior to departure. The travel procurement cards are issued in Business Services by the Purchasing Specialist. Please contact the Purchasing Specialist at 425-431-7067 or 425-431-7066 to arrange an appointment to obtain a travel card; bring a copy of the travel authorization with you. The travel procurement card should be turned in to Purchasing in Business Services within five (5) days of returning from your travel. It should be returned along with the Purchasing Card Reconciliation form with original receipts stapled to the form and the traveler’s signature as well as supervisor’s signature. Please turn in ALL receipts for charges on the card. If there is more than one traveler on a trip, one person may check out the card to pay for all the necessary allowable expenses for all the travelers and be responsible for submitting the appropriate paperwork.

USING YOUR PURCHASING CARD (P-CARD)

1. Purchase is made following cardholder approval. Purchase authorization form provided for documentation

2. Gather necessary documentation: confirmation, original receipt, packing slips.

Record keeping is a critical part of using a Purchasing Card. Original receipts, order confirmations and packing slips are critical documents.

Once an order has been placed, request an original itemized receipt or order confirmation. This will be attached to your Transaction Detail Report that is sent to the Business Office monthly for reconciliation.

Receipts should include the following information:

· Vendor identification (merchant name)

· Date the purchase was made

· Description, quantity and unit cost for each item purchased

· Total cost of order (IMPORTANT: was tax charged?)

· Card name or last four digits of the card number

Charge slips that do not identify the items purchased are not acceptable documentation. If an un-itemized charge slip is the only available purchase record, the user must sign and certify that said costs are true expenses of the district.

Lack of Receipt

In the event a receipt is lost or not originally obtained from the merchant, contact the merchant to obtain a copy of the receipt. If they are not able to replicate the receipt, see Appendix for an Affidavit of Lost or Non-Itemized Receipt form to fill out and attach to the Cardholder Activity Report for Reconciliation.

3. Reconciling Statements and Approving Payments

Monthly Reconciliation

Schools and departments must also reconcile procurement card charges monthly. The cardholder and the card custodian at each school or department will have access via the Internet to the JP Morgan Chase system that displays monthly transactions and monthly totals on the cards issued to the site. The Business Office will send out a monthly Transaction Detail Report. Each statement must be reviewed, initialed, and dated by the cardholder. Forward the original to the Business Services Department.

4. Send Original signed report and supporting documents to business office by the 15th of each month.

4. Disputing Transactions

Disputed Items may result from a failure to receive goods, misuse, defective merchandise, incorrect amounts being charged, duplicate charges or credits not yet received. It is the cardholder’s responsibility to resolve disputes, which should be handled as follows:

· Contact the vendor to clarify and resolve any differences or problems

· Document vendor contacts (name of customer service representative, phone numbers, dates, action to be taken, resolution deadline, return authorization numbers, etc.)

· If needed, return merchandise via a traceable or documentable means such as UPS and request proof of delivery.

· If you are charged for merchandise that has not yet been received, request proof of delivery from the merchant.

· Complete the Purchasing Card Dispute form (see form in Appendix) and forward it to the Business Office.

· Federal law provides a 60-day window through which formal disputes must be reported to the bank to preserve our dispute rights; we want to start addressing the issue within the first 30 days.


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